Keppel REIT announces DPU of 1.70 cents for 3Q2015

Overview

Keppel REIT is an office REIT with 88% of its portfolio is in Singapore and 12% in Australia.

Singapore

Bugis Junction Towers

Marina Bay Financial Centre

One Raffles Quay

Ocean Financial Centre

Australia

8 Chifley Square, Sydney

77 King Street Office Tower, Sydney

8 Exhibition Street, Melbourne

275 George Street, Brisbane

Office Tower on the Old Treasury Building site, Perth

Results for 3Q2015

Recorded a 4.6% and 1.8% year‐on‐year (“y‐o‐y”) growth in distributable income for 3Q 2015 and year‐to‐date 2015 (“YTD 2015”) respectively, as well as sustained levels of distributable income on a quarter‐on‐quarter (“q‐o‐q”) basis

Higher distributable income was due mainly to better performance from Ocean Financial Centre, Bugis Junction Towers and 8 Chifley Square in Sydney

Distribution per unit (“DPU”) of 1.70 cents for the third quarter 2015 (“3Q 2015”)

Increased fixed‐rate loans to over 70%, which will insulate against interest rate fluctuations

Average cost of debt remained constant at 2.5% and interest coverage ratio at a healthy 4.4 times

Hedged almost 100% of distribution payment from Australia up till the first quarter of 2016 (“1Q 2016”)

Continued to maintain low refinancing obligations, with close to 100% of total borrowings not due for repayment till 2017

Concluded a total of 82 leases or approximately 1.1 million sf of office space to‐date

Of the new office leases secured in 3Q 2015, one‐third were from tenants setting up presence and operations in Singapore, one‐third were from first‐time entrants into Keppel REIT’s portfolio and the remaining one‐third were expansions by existing tenants

Notwithstanding the supply of office spaces from both upcoming and existing buildings, the Manager completed 100% of all leases due for review and almost all leases due for renewal in 2015. With this, approximately 70% of total leases are not due for renewal till 2018 and beyond

Gained strategic control of the office and retail components at 8 Exhibition Street in Melbourne with the successful acquisition of the three remaining prime street‐fronting retails units

Achieved Certificate of Practical Completion for the office tower on the Old Treasury Building site in Perth, and the Government of Western Australia (WA) will commence its 25‐year long lease in the fourth quarter of 2015 (“4Q 2015”)